Free Basic Stock Performance Review: Home Depot Inc. (HD)

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Free Basic Stock Performance Review: Home Depot Inc. (HD)

Home Depot Inc.
2455 Paces Ferry Road NW
Atlanta, Georgia 30339
(770) 433-8211 phone number
(770) 431-2685 fax number
http://www.homedepot.com

What Home Depot Inc. (HD) Does

Home Depot Inc. is a home improvement supply retailer that operates stores in the United States, Mexico, and in Canada. They specialize in do-it-yourself project, home improvement projects, construction products, and landscaping products. In addition to the common Home Depot chain stores, Home Depot Inc. also owns and operates a number of EXPO Design Center chain stores. These stores focus more on interior design and remodeling then general construction products. By the middle of 2006 Home Depot Inc. owned 2,065 store in the United States, its possessions, Canada, and Mexico.

52 Week Performance (HD)

During the 52 week period that ended on 08/25/06 HD's value ranged from 32.85 to 43.95. On 08/25/06 the price per share ranged from 33.28 to 33.69. This is a much lower value than the stock had when it hit its peak price of 43.95 earlier in the year. The fall in value is probably due to a national decline in real estate sales, which had pushed the stock's value earlier in the year. The declining real estate market has been impacted many home improvement stores, especially since the federal government increased the interest rate. While the slowing real estate market is impacting most home improvement companies, the effects are not expecting to last.

Historical Performance - The Last Five Years

Over the last five years HD has experienced a wide range of highs and lows. Back in 2002 the stock hit its last great peak which valued the stock at over $50 per share. After this peak the stock plummeted between 2002 and 2003 to a value just over $20. Since 2003 the stock has been slowly growing with minor ups and downs along the way. Currently the stock is experiencing a decline in value.

Strengths of HD

If you are planning on investing in a home improvement company stock then HD is probably the strongest contender. It offers a dividend of .60 per share with a yield of about 1.8%. It also earned a higher quarterly growth compared to its biggest competitor, LOW. HD also brings in slightly less than twice the annual revenue of LOW, making it a stronger company overall.

Weaknesses of HD

Because HD is a home improvement store it is vulnerable to shopping trends and supply limitations. The unstable real estate market is making some ripples for HD's profits, and the current gas issues are driving up prices on transporting products across the country and to its stores in Canada, Mexico, and the U.S. possessions. If interest rates continue to climb they will probably hurt the real estate market even more, which in turn will hurt HD's value. So it is a good idea to keep an eye on the interest rates and the real estate market nationwide before you make your decision to buy or sell HD stock.

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